Decade break from pension contributions could see £90,000 loss - Aegon

'Sacrificing 'free money''

Sophie King
clock • 1 min read

Savers breaking away from pension contributions in their mid-20s could lose out on tens of thousands of pounds, research conducted by Aegon has found.

The analysis looked at the potential eventual losses to the pension pot of a 22-year-old, who joined a workplace pension scheme on an average starting salary of £20,000, if they decided to stop paying their pension contributions. It concluded that a break of 10 years could mean losing almost £100,000 (£91,600) of the total pension fund by state pension age. A break of one year could result in a loss of £7,000 of the total pension fund at state pension age and a break of five years could mean losing £42,100. Baby-boomers 'sleepwalking' into poor financial decisions Indeed, taking a ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Royal London named most recommended personal pension provider

Royal London named most recommended personal pension provider

Aviva leads in SIPP market, Defaqto finds

Isabel Baxter
clock 18 September 2025 • 4 min read
Pensions industry must unite on small pension pot consolidation model

Pensions industry must unite on small pension pot consolidation model

Uniting behind one industry-led model would mean widescale consolidation by 2023

Martin Richmond
clock 16 September 2025 • 3 min read
Pension withdrawals surge 36% as FCA reports record £70.9bn accessed in 2024/25

Pension withdrawals surge 36% as FCA reports record £70.9bn accessed in 2024/25

Nearly a million pension plans were accessed for the first time during the year

Sahar Nazir
clock 16 September 2025 • 2 min read